Japan’s FSA Issues ‘Business Improvement Orders’ For Crypto Exchanges
Japan and its authorities continue to impose regulatory measures in the cryptocurrency world. This time, six exchanges will have to suspend operations and some of them may entirely shut them down.
The Financial Services Authority (FSA), the regulatory agency of the country, has decided to issue business improvement orders to six important cryptocurrency exchanges operating in the country. The platforms affected are bitFlyer, QUOINE, Bitbank, BCBOX, BITPoint Japan and Tech Bureau.
For example, bitFyer is the 25th most important cryptocurrency in the market according to its trading volume ($73 million dollars in the last 24 hours).
The situation has pushed the market down. Most of the cryptocurrencies lost more than 10% of their price in less than 24 hours. In some exchanges Bitcoin was traded near $6,000 the lowest point in months.
Japan, initially a very friendly country towards virtual currencies, has change its stance towards these assets and the companies operating in the ecosystem. At the moment it is trying to control the market and avoid harmful situations for investors.
It is important to mention that in the last year, several crypto exchanges got hacked and investors lost important part of their funds. For example, at the beginning of the year, Coincheck lost $530 million dollars.
After the latest measures taken by the FSA, some companies decided to leave the country and invest in places like Singapore, Malta or Switzerland, which have very open policies towards virtual currencies and blockchain-related companies.
Furthermore, Japan has been one of the most benefited countries after the cryptocurrency bull run that the market experienced at the end of 2017. Japan’s GDP, which has been stagnant since 20 years, received an additional 0.3% increase.
bitFlyer commented about the situation related to the FSA and its sanctions:
“In order to maximize our efforts towards building a suitable service and improving on the issues identified, we have temporarily suspended account creation for new customers of our own volition. We apologize for any disturbance or worries imposed on our customers by these actions.”
In the United States, the Securities and Exchange Commission (SEC) is also trying to regulate the market and understand which laws should apply to Initial Coin Offerings (ICOs) and virtual currencies.